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Journal of Economic Geography Advance Access published online on May 8, 2009
Journal of Economic Geography, doi:10.1093/jeg/lbp017
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© The Author (2009). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

The effect of neighbourhood housing tenure mix on labour market outcomes: a longitudinal investigation of neighbourhood effects

Maarten van Ham* and David Manley*

*Centre for Housing Research, School of Geography and Geosciences, Irvine Building, University of St Andrews, North Street, St Andrews, KY16 9AL, Fife, UK. email <maarten.vanham@st-andrews.ac.uk>

JEL classifications: I30, J60, R23

This article investigates the effect of different levels of neighbourhood housing tenure mix and deprivation on transitions from unemployment to employment and the probability of staying in employment for those with a job. We used multiple regression models and unique individual level data from the Scottish Longitudinal Study. We found that high correlations between the percentage of social renting in a neighbourhood and labour market outcomes disappeared when controlling for neighbourhood deprivation, individual level education and tenure. The results show that living in a deprived neighbourhood is negatively correlated with labour market performance, but predominantly for homeowners and not for social renters. We suggest that selection effects and not causation are behind the neighbourhood effects found.

Keywords: tenure mix, deprivation, neighbourhood effects, labour market transitions, longitudinal data, Scotland
Date submitted: 14 July 2008     Date accepted: 7 April 2009


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